How To Get Good Interest From Your Sweep Account

How To Get Good Interest From Your Sweep Account

Gone are the days when money was trash. Today, it is an appreciated asset that can earn 5% a year. That is why it is important to ensure that the ready money in your brokerage account is earning a competitive yield.

A brokerage sweep account, sometimes called a core or settlement account, holds your uninvested money. If you are selling a security – a stock, mutual fund or exchange-traded fund, let’s say – the profits are placed in the sweep account. And when you buy a security, the money in the account pays for the trade. This all happens automatically.

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